S&P: Electronic Data Systems off watch

Standard & Poor's said it affirmed its BBB- corporate credit and senior unsecured ratings on Electronic Data Systems Corp. and removed them from CreditWatch, where they were placed on July 15. The outlook is negative.

The affirmation is based on S&P's expectation that the Navy Marine Corp. Intranet contract largely has been stabilized, will be significantly less of a financial drain to the company going forward and that liquidity should be solid during this transition period, even without the previously planned $1 billion issuance of stock and/or equity-linked securities.

A streamlined set of service-level agreement metrics and a deployment schedule have been agreed upon, according to S&P, which should allow Electronic Data Systems the ability to better calibrate its capital investment requirements.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.